Reports

World stock markets news summary (US, UK, Europe, Asia) (March 12, 2010)

Contributed by Paddy Power Trader

By Paddy Power Trader

British ruling Labour party cut the opposition Conservatives’ lead by 2 points but will still fall short of an overall majority after an election expected on May 6, an opinion poll showed. (RTRS) The daily YouGov poll in the Sun newspaper showed the Conservatives unchanged on 37%, Labour up 2 points on 34% and the Liberal Democrats unchanged on 17%.

UK News

UniCredit has alerted investors in a client note that Britain is at serious risk of a bond market and GBP debacle and faces even more intractable budget woes than Greece. (Telegraph)

UK House prices increased in February at the fastest pace in more than seven years, research group Acadametrics Ltd reports. (BBG) The average cost of a home in England and Wales was up 1.9% from January, to GBP 222,008. The biggest advance since September 2002.

US News

Fed’s Dudley says ‘economic recovery is still very fragile’ and says US needs credible plan to cut long-term deficits. (BBG) In other news, Fed’s Yellen is said to be Obama’s choice for Federal Reserve vice chair.

White House’s Summers said US recovery has a very long way to go, however US economy is very close to employment growth and deficit must come down after recovery strengthens. (BBG)

US GDP will expand by 3% this year, according to a survey of 54 economists. (WSJ) The federal-funds rate will be raised by the end of the year, 38 of the economists predicted. The economists predict the chances of a so-called double dip recession occurring are about 17%.

The Fed’s balance sheet edged up to USD 2.265trl in the week ended March 10 from USD 2.262trl in the prior week. (RTRS)

USD 13bln (Act) 30y Note Auction drew yield of 4.679% vs. Exp. 4.702%, b/c 2.89 vs. Avg. 2.56 (Prev. 2.68) and Indirects 23.9% vs. Avg. 42.32% (Prev. 40.77%). 82.80% of total issuance allotted at high. (BBG)

Forex

The US should not make a political issue out of the CNY, China’s central bank deputy governor Su Ning said. (RTRS)

The Bank of Canada believes interest rates should stay at near-zero levels for another few months even though the economy is showing signs of quicker than expected recovery, the central bank chief Carney said, adding that there was no need for Canada to align its interest rate moves with those of the US. (RTRS)

SNB’s Hildebrand reiterates stance on CHF and says FX intervention is one tool the SNB can use, but declined to indicate level of SNB FX intervention. (RTRS/BBG)

UniCredit has alerted investors in a client note that Britain is at serious risk of a bond market and sterling debacle and faces even more intractable budget woes than Greece. (Telegraph)

Commodities

Oil was steady above USD 82 a barrel, poised for a second consecutive weekly increase, on views that energy demand will continue to grow despite any efforts by China to tighten monetary policy further on rising inflation. WTI crude futures were trading at USD 82.15, up USD 0.04, at 0612 GMT. (RTRS)

Company News

Equities broke out of range bound trade late into the close to finish the session higher. Weaker than expected economic data and fresh speculation of further policy tightening by China was largely ignored. The financials were among the best performing stocks yet again, with Citigroup (+5.56%) outperforming following upbeat comments from CEO Pandit and Rochdale’s Bove who said that stock may double to USD 8.50. Finally, at the closing bell DJI closed up 0.42% at 1061.84, S&P 500 closed up 0.40% at 1150.24 (highest level since October 2008) and NASDAQ 100 closed up 0.34% at 1923.81.

UK

BP – Co. has dismissed suggestions that its acquisition of Devon Energy’s 5.6% shareholding in Azeri-Chirag-Gunashli oilfield is threatened by pre-emption rights. (The Times)

GlaxoSmithKline – Allergan says entered into amendments to existing license agreements with co., says Allegan re-acquired rights to develop and sell botox in Japan, China for all current, future cosmetic indications and co. retains rights to develop, sell botox in Japan, China for all current, future cosmetic indications. (RTRS)

Lloyds Banking Group – Co. is close to agreeing a joint venture with Coller Capital Ltd to sell a number of assets assembled by HBOS, including stakes in Vue Entertainment Ltd and House of Fraser Plc, in a deal that would see Lloyds retaining an interest in the portfolio. (Sky News)

British Airways – Co. faces second labour dispute from ground workers, co. union may ballot ground staff on work practices. (Sky News)

US

The Federal Deposit Insurance Corp approved a 6 month extension of the so-called safe harbour that shields failed banks from government seizures of the assets underlying securities they hold. (BBG)

National Semiconductor – Q3 EPS USD 0.22 vs. USD 0.18, Q3 revenue USD 362mln vs. Exp. USD 348.56mln, Q3 net sales USD 361.9mln vs. Exp. USD 348.6mln. Co. sees Q4 revenue USD 375-390mln vs. Exp. USD 359.9mln and declares quarterly dividend USD 0.08/share. (BBG)

Exxon Mobil – Co. expects refining margins to remain depressed for several years. Co. says to spend USD 2bln on share buybacks in current quarter. (BBG/RTRS)

Google – Italy’s antitrust extends co. probe into advertising revenues (RTRS)

Citigroup – Co.’s CEO says co. is going into 2010 with strong capital and liquidity and says ‘well positioned to return to sustained profitability’, says aiming for ROA of 1.25-1.50%, up from 1.15% in 2009. (BBG/RTRS)

Capital One – Co. sees 2010 NIM (net interest margin), revenue margin and operating expense similar to 2009, says sees domestic card charge-off USD peaking in Q1. (BBG)

Automatic Data Processing – Co. CEO says US jobs bill could result in ‘a lot of new business’ for co. over next 60-90 days. (RTRS)

Pfizer – Co. said the cancer drug Sutent failed to halt the progression of advanced breast tumours in two studies, and the co. stopped a trial of an experimental medicine to treat lung malignancy. (BBG)

Allergan – Co. says entered into amendments to existing license agreements with GlaxoSmithKline, says re-acquired rights to develop and sell botox in Japan, China for all current, future cosmetic indications and says Glaxo retains rights to develop, sell botox in Japan, China for all current, future cosmetic indications. (RTRS)

Companies paying Dividends: Carnival (USD 0.1000)

Europe

GERMANY

Allianz – Co. is ready to grow through acquisitions in Brazil and Mexico. (Cinco Dias)

Linde – Co. says it will consolidate its US electronics and speciality gases customer services operations. (BBG)

Fresenius – Co. says improves credit facility terms, adding that interest rate on roughly USD 1.2bln term loan B will be reduced by one-third. (RTRS)

FRANCE

Total – The CGT union yesterday called for the resumption of strike action at all French refineries to protest against co.’s closure of its Dunkirk facility. (Les Echos)